American Exchange Group plans to acquire the assets of Allbirds, the struggling shoe brand, in a $39 million deal.
The sale, negotiated by a special committee of independent directors, is subject to approval by the brand’s shareholders. The deal, which could see price adjustments before closing, is expected to be finalized in the second quarter of 2026 and will include a winding down of the public company.
Allbirds shares closed at $2.98 on Monday, and the stock surged in after-hours trading following the announcement of the deal.
The move caps off a tumultuous period for the sustainably-minded brand that was once hailed as the next big thing in footwear. When it debuted in March 2016 with a single style, a $95 wool sneaker, Time magazine called Allbirds “the world’s most comfortable shoes” — a stroke of luck no one could have predicted. The brand, led then by cofounders and shoe outsiders Joey Zwillinger and Tim Brown, sold one million pairs of shoes in just two years.
Both Zwillinger and Brown eventually exited as the brand made a series of missteps that saw it grow too quickly and stray too far from its tried-and-true style.
In the most recent third quarter, the company in November posted a net revenue decline of 23.3 percent to $33.0 million, versus $43.0 million in the same year-ago period. It also reported a net loss of $20.3 million, slightly better than the net loss of $21.2 million a year ago. The brand closed its remaining full-price stores in the U.S. in February.
“We are incredibly thankful to our teams for the work they have been doing to fuel our product engine, build awareness of Allbirds and deliver an engaging customer experience,” Joe Vernachio, chief executive officer of Allbirds, said in a statement. “Over the past decade, Allbirds has evolved into a lifestyle footwear brand known for modern design, innovative materials and unparalleled comfort. This next chapter with AXNY builds on the foundational work already completed and sets up the brand to thrive in the years ahead.
American Exchange Group has been an active acquirer in the brand management space, with a portfolio of owned and licensed brands that includes Aerosoles, White Mountain, Ed Hardy, Rampage, Alexis Bendel, Born and Jonathan Adler, among others.
